The credit portfolio of private banks reached USD 42,129 million in November 2023, an annual growth of 9.9%; while deposits reached 44,946 million dollars in the same month this year, which represents an annual growth of 6.7%.
Banco Pichincha is the financial institution in the country with the most assets, liabilities, capital and deposits, which also affects the fact that it provides the largest amount of loans. This financial entity leads the list of those that generate the highest profits every year.
Ranking of banks in Ecuador with the highest profits in 2023
Its loan portfolio alone stands at $11,593.7 million and total deposits at $13,002 million as of November 2023.
These are values that double the figures of those next on the list: Guayaquil, Pacífico, Produbanco and Bolivariano.
The total figures for private banks reflect a the slowdown of the loan portfolio, whose annual growth rate went from 15.9% in November 2022 to 9.9% in the same month of 2023.which is a drop of six percentage points.
While the growth of deposits continues, since the annual growth rate in November 2022 was 6.2%, and in the same month this year it was 6.7%.
“The increase in deposits is proof of clients’ confidence in the banking system; In addition, due to their intermediary role, deposits are the main source of financing for financial entities to grant loans to Ecuadorian families and companies,” said the report of the Association of Private Banks of Ecuador (Assobanca).
However, this latest publication acknowledges that there are “slowing down of funding growth“.
58% ($24,515 million) of the total loan portfolio as of November 2023 was allocated to production loans (productive, small and medium enterprises, housing and microcredits), and the remaining 42% to consumer loans ($17,614 million).
“In this last phase of the year, banks will continue to provide loans to Ecuadorian companies and families in order to support the economy as a whole,” Asobanca points out.
Accumulated profit, another measure of the banking system, reached $672.7 million between January and November this year, 11.2% more than in the same period in 2022.
Ten banks that accumulated the highest profits in 2023 in Ecuador*
1.- Pichincha: $173,590,416
2.- Guayaquil: $107,401,002
3.- Pacific: $106,520,834
4.- Produbanco: 61,704,514 dollars
5.- Bolivarian: 57,990,976 dollars
6.- Diners Club: $57,326,855
7.- International: $56,046,869
8.- Citibank: $16,468,232
9.- Austria: $13,634,048
10.- General Rumiñahui: $13,486,153
* Between January and November this year
Fountain: Datalab of the Association of Private Banks of Ecuador (Assobanca)
Why aren’t these credit numbers better?
The delivery of financing is affected by the existence of interest rate ceilings that do not allow setting rates based on the risk of each client, do not reflect market conditions in the current situation and therefore prevent the inclusion of more people in the formal financial system, according to Asobanca.
Marco Rodríguez, executive chairman of Asobanc, points out that Ecuadorian banks are solid and solvent, supporting the country’s productive resurgence and generating more than 20,000 jobs.
“They are not the subjects that make the most money in the state, nor is it the most profitable activity, but they are the ones that contribute the most in taxes to the state. By putting more taxes on banks, less credit is created for Ecuadorian companies and families, that is, the more taxes on banks, the more it affects economic activity, both in the production sector and in the consumption part, and therefore less is created. tax collection,” says Rodríguez.
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Source: Eluniverso
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
